The cheapest bitcoin ETF yet: Morgan Stanley uses 0.14% fee to draw $100 million in first week

Morgan Stanley’s new MSBT fund has quickly attracted over $100 million by offering the market's lowest fees, sparking a fresh wave of competition from rivals like Goldman Sachs.

What to know:

• Morgan Stanley’s new spot bitcoin ETF, MSBT, has attracted more than $100 million in its first week, making it the firm’s most successful ETF launch to date.
• With a 0.14% expense ratio, MSBT is the cheapest spot bitcoin ETF and benefits from Morgan Stanley’s vast wealth management network, though it remains far smaller than BlackRock’s $53 billion IBIT fund.
• Goldman Sachs’s filing for a Bitcoin Premium Income ETF and BlackRock’s work on similar income-focused products highlight a broader shift as major Wall Street firms race to offer more structured bitcoin investments.

Morgan Stanley’s (MS) spot bitcoin exchange-traded fund (ETF), trading under the ticker MSBT, has drawn more than $100 million in inflows within its first week on the market, signaling strong early demand for the bank’s latest push into digital assets.

The fund, which began trading on April 8, tracks the CoinDesk Bitcoin Benchmark 4 PM New York Settlement Rate and charges a 0.14% expense ratio. That makes it the cheapest product in the category, giving it a pricing edge as competition among issuers intensifies.

Still, cost is only part of the story. MSBT enters the market with a built-in distribution advantage through Morgan Stanley’s vast wealth management business, which oversees trillions of dollars in client assets. The firm’s network of financial advisors provides a direct channel to investors who may prefer gaining exposure to bitcoin BTC$74,614.44 through managed portfolios rather than trading on crypto-native platforms.

That reach could prove critical as the spot bitcoin ETF market matures. While MSBT’s early inflows are notable, the fund remains far smaller than BlackRock’s iShares Bitcoin Trust (IBIT), which has amassed more than $53 billion in assets since launching in January 2024 and dominates the category.

Morgan Stanley’s head of digital assets, Amy Oldenburg, said MSBT has already become the firm’s most successful ETF launch in an interview with Bloomberg.

Some analysts expect Morgan Stanley’s product to pull assets from existing funds like IBIT, particularly among clients already within its advisory ecosystem. At the same time, the firm’s entry may help expand the overall market by bringing in new investors.

Goldman filing signals broader Wall Street shift

Morgan Stanley’s move is already prompting responses from peers. Earlier this week, Goldman Sachs filed for a Bitcoin Premium Income ETF, marking one of its first direct entries into the crypto investment space. The proposed fund would use options strategies to generate income, reflecting a growing trend toward packaging bitcoin into products that produce steady cash flow rather than relying solely on price gains.

BlackRock is also preparing a similar income-focused ETF, underscoring how competition is moving beyond simple spot exposure into more structured offerings.

“The significance of Goldman’s filing is that yet another blue-blooded, old guard financial institution is acknowledging it can no longer ignore bitcoin,” Nate Geraci, president of NovaDius Wealth Management, said. “With Morgan Stanley’s recent entry into spot bitcoin ETFs, it’s becoming clear that other legacy Wall Street firms are realizing they can’t just stand pat. I wouldn’t be surprised to see firms like JPMorgan soon follow suit.”

As inflows build and new products list, Wall Street’s role in shaping how investors access bitcoin appears to be expanding quickly.

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